Elon Musk has offered to buy 100% of Twitter for $54.20 a share, or for about $41 billion, saying the social media company needs to be transformed privately.
“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy,” Musk wrote in a letter sent to Twitter Chairman Bret Taylor and disclosed in a securities filing.
According to Musk, after making investment in Twitter he realized that the company will “neither thrive nor serve” free speech in its current form. Therefore, he believes that “Twitter needs to be transformed as a private company.”
“As a result, I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced. My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder,” Musk added.
According to Musk, “Twitter has extraordinary potential” which he wants to “unlock” by operating privately.
Twitter, Inc. confirmed that it has received a proposal from Elon Musk to acquire all of the Company’s outstanding common stock for $54.20 per share in cash.
“The Twitter Board of Directors will carefully review the proposal to determine the course of action that it believes is in the best interest of the Company and all Twitter stockholders,” the company said in a press statement.
On April 4, Musk made his ownership in the social media behemoth public for the first time. He went on to become a member of the company’s board of directors which he abandoned just before his tenure was about to start.
If Musk had accepted the seat on Twitter’s board, he would have been limited to a maximum stake of 14.9% in the company. So, this was one of the main reasons or probably the only reason he refused to join the board.
Musk believes in aggressive growth and take quick decisions. So, the decision to buy Twitter to transform it – the way he wants to – is not quite surprising. Although, it can be discussed whether a privately controlled social media platform would be really free and fair.
Twitter did not respond to a AlexaBlockchain request for comment.
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